Brammo Inc. filed the appropriate forms with the SEC yesterday stating that it has raised $12.4 million in Series B funds, in what is still an open round of financing. Brammo hopes to raise a total of $30 million in the Series B offering, with the use of funds likely going towards expanding Brammo’s reach into the Asian and European markets, as well as building out the company’s product line into other target segments.
Also in the Form D filing with the SEC we get a glimpse of the people behind the company’s management, which includes a presence from Brammo’s initial investors Best Buy & the clean-tech venture capital group Chrysalix, as well as Brammo’s CFO Bruce Gilpin. New to the ranks is David Kurtz from Alpine Inc., an oil and gas exploration and development firm that is leading the Series B round with another firm that is so far unknown.
It says something about the state of electric vehicles when oil companies start investing in them, so it doesn’t surprise us to learn that most of the remaining $17.5 million in the Series B round has already been committed, and could close in the new year. Brammo’s ability to raise this much capital is a good sign for EV fans and other EV companies alike. Despite tight coffers, venture capitalists and private equity funds are still investing in electrics, especially electric motorcycles.
Brammo joins the ranks of Zero Motorcycles and Mission Motors, both of whom have had to also file similar paperwork with the SEC, meeting threshold point in fundraising where they needed to disclose private offerings of stock. Yesterday’s filing has been the largest collection of capital so far in this space, with Brammo’s $12.4 million dwarfing the $7.3 million that Zero raised earlier in the year (here & here). To-date Brammo has raised $23 million ($41 million when this round is closed), with its $11 million Series A round taking place in August 2008.
The use of the funds according to CEO Craig Bramscher will go towards Brammo’s global expansion, product development, and day-to-day business. Coming on the heels of its announced partnership with Flextronics, the cash infusion puts Brammo as the first-mover into foreign markets in the electric motorcycle space. “It allows us to leverage our guerilla market tactics across the globe,” Bramscher said of the new funds.
Brammo’s coffers may be larger than what they were before, but few companies would consider anything under $100 million adequate funding for a global expansion. “The comparison with Tesla keeps coming up in the conversation,” says Bramscher. “We like that, but we’re trying to achieve the same goals with a lot less.” Being efficient with funds is critical in this market to woo investors, which Brammo says is one of the things that’s helped them bring in the dealflow.
Bramscher hopes one day to take Brammo public, taking a cue from Tesla’s recent IPO, but that stop on the Brammo roadmap is still farther down the road, and right now the company is focusing on this investment. “Our hope is that this gets us to black ink, that this gets us global expansion, and gets us marketing,” explained Bramscher. “We’re trying to find the right investors that really do bring the right kind of value to the company. So far, everybody adds value beyond just the money they’ve invested.”
For consumers, expect new Brammo-clad products to be announced. While we already know that the Brammo Empulse will make its production debut next year, other models are likely to come from the Ashland-based company. “With the better drivetrain and longer range, we’re able to go into other segments,” hinted Bramscher. “We’re looking at anything with volume.”
With volume being the key word, Brammo is very close to having its Asian market headquarters in China picked out, while the company is still looking for a location for its brick and mortar presence in Europe.